Feb 19, 2018
Mortgage rates have continued their upward march towards the 5% area. The move has come quite quickly and has created further questions as to how high rates can climb. However, we must keep rates in a historical perspective. Even at these “lofty” levels, rates are still extremely attractive from a historical standpoint and those of us who are old enough to remember, we really know what high rates look like!! Our philosophy is to analyze a borrower’s overall financial profile and recommend the mortgage that best suits the individual. In this marketplace, there is no such thing as one loan fits all! Many of our lending partners have developed programs (with our feedback) that only require bank statements or rental income for qualifying, not the traditional tax return methodology. Please ask to us to review all the various options available – fortunately, there are alternative options that exist, versus the heavy handedness of the last few years. Keep in mind, these rates won’t be the lowest, but our goal is to get you into the property or be able to pull the cash out that you need. There is a time and place for everything and sometimes a slightly higher mortgage rate is just a cost of doing business…..The key is being in the game instead of a spectator.
In regard to the real estate market, we feel the most prevalent issue is with the lack of inventory for sale. Multiple offers are the norm for well priced properties. Another issue that we need additional time to see how plays out, is the effect of the new tax laws and how this will alter, if at all, the mindset of buyers because of the tax deductibility of property taxes. We don’t feel that the mortgage component will have a material effect on whether or not someone purchases a home.
Our recommendation as it relates to the mortgage arena is to allow Centek to evaluate your existing mortgage profile and analyze if any alternative programs would be better suited for your overall financial strategy – reducing the amortization of your current loan, changing from an adjustable rate mortgage to a fixed rate or conversely changing from a fixed rate mortgage to an adjustable rate program. Mortgage rates have spiked above 4% and if rates continue down this path, our steadfast philosophy is to have your loan package in and ready to go in order to best take advantage of any rate decline or be prepared to “bite the bullet” and change out of an adjustable to a fixed rate or even a new adjustable rate to provide a longer fixed period even if this means increasing your current interest rate. If we start the process further down the line, we might not be able to catch the window of opportunity.
Please feel free to contact us to discuss your financing or overall real estate acquisition or sales needs. We can review and strategize with you. Stay tuned!!
Gloria Shulman & Curtis Cohen
Some of our unique programs to help you close your deal or have a smooth refi…
- 3.5% – 5% down program up tp $679,650 loan amount
- 10% down program up to $1.450M sales price
- 15% down program up to $2M sales price. We can also go higher with larger downpayment.
- With married couples, we are now able to utilize the highest credit score for qualifying purposes.
- In divorce situations with alimony paid involved, we are able to treat the payment as a reduction to income vs. liability; this has a dramatic affect for the qualifying process, especially with higher alimony payments.
- Fully blended ratios with borrower and co-borrower treated as 1 entity for loan qualifying. This translates to parents who want to buy for their children, with limited income, are now able to obtain owner occupied rates and terms.
- With some programs, we close with 1 year of tax returns and / or qualifying bank statements instead of the usual two.